Buying a Home

Frequently Asked Questions:  Here are some of the most Frequently Asked Questions we receive on purchasing a home.  If you don’t see your question here, or you want more specific information on these topics – click on our “Ask Your Own Question” link on our home page and we will respond promptly with answers to your question(s).

1. How do I know if I qualify to buy a home? 
2. Do I need a large down payment to purchase a home?
3. Do I need ANY money to purchase a home?
4. Do I have to pay a Realtor?
5. How long does the process take?
6. I’m considering purchasing a condo instead of a home.  Is this a good investment?
7. I already own a home.  Does this change the home buying process?
8. We have been considering building a home.  Is this a more expensive option?
9. I’ve never bought a home and I’m a little bit nervous – is it a complicated transaction?

Q:  How do I know if I qualify to buy a home?

You can qualify yourself using the same formula a lender will use.  Click on our “???” Link on our home page.   A lender will also look  at your credit report and job history as qualifying factors.  We have lenders who will pre-approve you on the phone and provide you with a free preliminary credit report on request.

Q:  Do I need a large down payment to purchase a home?

No!  There are many 0% down payment options available for homebuyers.  Click on the “Ask Your Own Question” link on our home page and provide us with your contact information and we’ll provide you with information on how to purchase a home with no money down.

Q:  Do I need ANY money to purchase a home?

Yes.  It is recommended that you have a minimum of $1000.00 available for pre-closing expenses such as credit report and appraisal fee, home inspection, and homeowners insurance.   Also, you will have “closing costs” associated with getting a loan. (Usually about $1500.00-$2000.00)  These costs can also be built into the purchase price of the house, but you will have more negotiating room on the price if you have that money to invest in your home.

Q:  Do I have to pay a Realtor?

No.  The Realtor’s commission is paid out of the Seller’s proceeds when the home is sold.  However, in the State of Ohio you still have independent representation.  This means that your Realtor represents YOU and not the Seller, even though the Seller is paying the commission.  The only exception to this rule is if you buy a home through the listing (or Seller’s) agent, and the agent is representing both parties.  If you work with a Realtor but do not ultimately purchase a home you do not, in most cases,  owe the Real Estate Agent payment.  Ask your Realtor for his or her policy on this.

Q:  How long does the process take?

Typically, a first-time homebuyer should allow approximately 45-60 days to find and close on their new home.  This, of course, can vary depending on the specifics you want in your home.  It takes approximately 30 days from the time a contract is finalized to close on your home.  

Q:  I’m considering purchasing a condo instead of a home.  Is this a good investment?

It can be. Like any other investment decision you need to consider your lifestyle, term of ownership, location, and resale factors.  You should know that financing a condo is different from financing a home.  In some cases condo financing requires 20-30% down payment.  Also, a lender will qualify you on the mortgage amount + the monthly condo assessment or fee – sometimes as much as $200.00 additional per month.

Q:  I already own a home.  Does this change the home buying process?

Only slightly. You will still go through the same qualifying process as a first-time homebuyer, but you may have more financing options.  Also, assuming that you will need to sell your existing home to purchase your new home, the timing of the purchase will need to coincide with that sale.  Your Realtor can help you.  Click on our “Selling Your Home” link on our home page for more information regarding the sale of your home.

Q:  We have been considering building a home.  Is this a more expensive option?

Not necessarily.  Many builders offer incentives such as lower financing rates and $ down payment and work equity options to lower your costs and help you own your new home.  You should also know that most major builders will compensate a Realtor to represent you in the purchase of your new home – at no additional charge to you.  This independent representation can help you get the most from your new-build experience.  Click on the “Building a New Home” link on our home page for more information.

Q:  I’ve never bought a home and I’m a little bit nervous – is it a complicated transaction?

It is completely normal to be nervous about taking such a big step.  Buying a home is a major investment and a big decision – often coupled with other big decisions like getting a new job or getting married.    That is why you need to choose your Realtor carefully.  A Realtor should be prepared to thoroughly educate you on the process, your options, and the wisdom of your investment.    Click on the “Home Buyer’s Seminar” link on our home page.  Attend our next Home Buyer’s Seminar for a casual, open forum to learn about the steps to home ownership.  If the timing of the Seminar is not convenient to your buying plans, call or e-mail us for a private 1-hour session free of charge.

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